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Could you please elaborate on this?
by siavash 14y ago
Could you please elaborate on this?
- Lexarius 14y agoSuppose that someone is able to buy up enough of your stock to essentially own your company, and they notice that the cost of doing so is less than the value of all of the things your company owns. Someone could make a profit by buying your company and then butchering it, keeping a few prime cuts for itself and selling off the rest. This doesn't happen if the raiding company can't put together enough money to make the purchase, or if not enough of the stock holders are willing to part with their shares.
- nandemo 14y agoLexarius' answer is great, but if you want to read more about it just look up "corporate raid[ing]" or "leveraged buyout", e.g.: http://en.wikipedia.org/wiki/Corporate_raid http://en.wikipedia.org/wiki/Corporate_raid